Aave Responds to Blocking Addresses Over Tornado Cash Clampdown

DeFi lending protocol Aave Protocol said the TRM API on its app was responsible for blocking addresses that received ETH from unknown sources through Tornado Cash.

In a Twitter thread on Saturday, the protocol claims that it receives blockchain intelligence from TRM Labs and has integrated TRM API into its frontend to ensure a safe and secure system.

1/8 The Aave team’s top priority is building a safe & secure system for users. We integrated TRM’s API on the Aave IPFS frontend, which is why some users may be experiencing trouble accessing the Aave app, one of the frontends to the Aave Protocol.

Read for more info

— Aave (@AaveAave) August 13, 2022

According to the DeFi protocol, “TRM API risk parameters identify all wallets that have interacted with Tornado Cash contracts” and in compliance with OFAC sanctions, block all addresses that interacted post sanction. 

This explains why several addresses entered the blocklist, including the ones “sent “dusted” ETH by third parties interacting with the Tornado Cash contracts without consent.”

It added that it has addressed the issue and will “continue to evaluate responsible and reasonable risk mitigation given the circumstances.”

Additionally, the protocol reiterated that it remains decentralized and governed by a DAO, urging its “community to remain engaged and actively fight for open and fair finance.”

Justin Sun Regains Access to Aave

Meanwhile, Justin Sun, whose Aave account was one of those blocked for receiving $0.1 ETH through Tornado Cash, has confirmed that the account is active again.

My @AaveAave account is back. Big shout-out to twitter new ceo @StaniKulechov and I’m a big aave fan!

— H.E. Justin Sun (@justinsuntron) August 14, 2022

Justin Sun had earlier revealed that he was unable to interact with Aave on August 13. The Tron founder said that the decentralized protocol had blocked his wallet because of a Tornado Cash-linked transaction.

#PeckShieldAlert Over 600 addresses received 0.1 $ETH from https://t.co/LLczi0PVvh: 0.1 ETH contract which was added to the OFAC sanction list, including Big Names and Centralized exchanges.
Some users claimed that they were blocked by @AaveAave due to the “airdrop”. https://t.co/WeXfpiSi7N pic.twitter.com/cB4M5T29Ya

— PeckShieldAlert (@PeckShieldAlert) August 13, 2022

Peckshield later revealed that over 600 wallets were affected by the ban.

Available information also showed that other decentralized protocols like Uniswap, Balancer, dYdX, and others stopped users because of the OFAC sanction on Tornado Cash.

when defi apps started snitching on you, with links

2021-10-25 uniswap https://t.co/ym0wdNPJS6
2022-05-10 ren https://t.co/9588mTitKe
2022-06-29 balancer https://t.co/5V1FaxPUOn
2022-08-11 oasis https://t.co/GzkOQXXPb9
2022-08-12 aave https://t.co/vYY8MjqZ1p
(never) yearn, curve pic.twitter.com/1FkgVPnUqb

— banteg (@bantg) August 12, 2022

Crypto Community Questions DeFi Protocols “Decentralization”

Some DeFi protocols’ decision to screen and block addresses that interacted with Tornado cash has led to questions about their “decentralization.”

In Aave’s case, the community questioned the logic of blocking an average user’s access to the front end when malicious players could still choose to directly interact with the contract.

How is it critical? Hackers can still interact with the contract directly, while non-tech savvy users get blocked from using the front end. This is so stupid.

— Baozi (@steezyasphuc) August 13, 2022

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Aave Responds to Blocking Addresses Over Tornado Cash Clampdown appeared first on BeInCrypto.

Related Posts

5 altcoins that could turn bullish if Bitcoin price stabilizes

If Bitcoin price stabilizes and begins to consolidate, these five altcoins could see strong upside. The major United States stock market indices continued their decline last week…

Bulls and Bears in Crypto: When is the Right Time to Buy or Sell?

Bulls and Bears: The bronze sculpture of a bull has long become a symbol of Wall Street – the historic center of New York’s financial district. Alternating…

Ripple and Armin van Buuren’s Armada Music to Launch an Album in the Metaverse

The blockchain company Ripple joined forces with the music integration platform Styngr and the record label Armada Music to release an exclusive album in Maladroids (a video…

Apple Will Allow NFT Sales In Apps, But Will Apply 30% Commission Fees

Apple is adding standardizing acceptance of NFT-based apps to be available on the Apple App Store. However, the company is including their standard 30% transaction fees for…

Jihan Wu-Backed Crypto Miner Bitdeer Acquires ‘Singapore’s Fort Knox’ for $28.4 Million

Sources have disclosed that the digital currency mining operation, Bitdeer Technologies, has purchased a high-security storage and display facility in Singapore called Le Freeport for $28.4 million….

NFTs and eCommerce: What to Expect in the Future

Technological innovations aim to add value to existing ideas and ways of doing things. This helps to create better ways of doing things and for industries to…

Generated by Feedzy